Let’s Talk About The Alberta Pension Plan and The PRIVATE SECTOR Taxes, that fuel the Canada Pension Plan – September 24, 2023
Most people in Canada have extremely low financial IQs, and this works to the benefit of Left Wingers, who often use fear tactics to manipulate what’s really happening.
I’m going to keep things simple in this post, and from there you can do your own research. First and foremost, I have to remind the reader that the Federal Government HAS NO MONEY. The federal government sustains itself via taxation and borrowing money from the Bank of Canada, which prints the money out of thin air.
The current fiat monetary system that we’re beneficiaries of, currently has one BONUS that prevents hyperinflation from happening in Canada. The Foreign Exchange markets have decided that the Canadian dollar should be considered one of the world’s reserve currencies, and what this means for us as Canadians is that we pay a lower price to IMPORT foreign-made goods into Canada.
For a lot of people in Canada, they will say, we don’t want this cheap stuff made in China; however, in most countries on the planet, they can’t afford to buy “cheap stuff” made in China because their currencies are WORTHLESS.
If the world were still on a Gold Standard, and the Canadian economy was structured the way it is today, Alberta and possibly Saskatchewan would be the only solvent Provinces in Canada; why? Because the PUBLIC SECTORS in most Canadian provinces are larger than their private sectors.
Public Sector workers do NOT contribute to CPP with real money; Public Sector paychecks are the result of private sector TAXES as well as Federal Government BORROWING money via bonds, bank of Canada etc.
One of the major complaints you’ll get from Western Canadians is regarding transfer payments, what people tend to forget is that TRANSFER PAYMENTS go to the public sectors of other provinces.
Not only are Albertans paying to CPP directly, but they’re also contributing to CPP indirectly. If you know anything about Canada in general, most of the provinces are PERPETUALLY INSOLVENT for example Quebec is a PERPETUAL consumer of transfer payments, so although Quebec is not being mentioned in all of this, Alberta having their own pension plan, may also effect Quebec.
What Albertans aren’t paying attention to is that because they’ve allowed the Federal government to as an example have the RCMP handling provincial policing, and handling their pensions, they’re actually giving up more money to transfer payments and potentially in an inefficient way, because remember even Albertan PUBLIC SERVANTS are contributing to CPP and Albertans are known for having a SMALLER public sector in comparison to other Canadian provinces.
What I’m getting at is that Alberta’s Pension would likely be most solvent, even if they allowed themselves to be penalized for leaving. Now, obviously what I just wrote is a hard sell, especially if you don’t understand the math, but in a nutshell, the larger the public sector, the more PRIVATE SECTOR tax revenue it requires to sustain itself.
Justin Trudeau’s entire cabinet are scheduled to get some sweetheart pensions, and if you ask me, these pensions will be primarily financed by the same Albertans Justin Trudeau is constantly demonizing.
My view on the Canada Pension Plan is that it should be left to the PROVINCES, as it would be another indication as to what provinces are NOT pulling their own weight in the Federation.
The end goal for a province like Alberta should be to BANKRUPT the transfer payments arrangements, and they’d do this by minimizing their exposure to the Federal Government. Alberta should stop allowing the FEDERAL government to do things it’s capable of doing for itself.
For the most part, Pensions are pyramid schemes, new blood paying for old, and because Alberta has younger demographic numbers than the rest of Canada, as long as these numbers hold steady, Alberta’s pension system will be the best in the nation.
With all the pleasantries out the way, let’s talk about the negatives, the negatives are ALL POLITICAL. Currently, because of these silly wars on fossil fuels, RUSSIA is able to finance its war with Ukraine. The carbon tax makes fossil fuels ARTIFICALLY more expensive in CANADA, but the operational costs to discover energy in RUSSIA are still the same, meaning that as the price to discover fossil fuels gets more expensive in Canada, the price remains level in OPEC+ countries.
Kuwait (an oil-rich nation) has a serious OBESITY problem; why? Because the oil revenue is so vast that not only does Kuwait enjoy one of the strongest currencies in the world (Kuwaiti Dinar), its welfare state equivalent is well financed.
In Canada, via the labor union culture, we’ve been sold that a WEAK loonie is a good thing. There’s this MYTH that higher wages require a weaker currency or that we have to devalue the loonie to save the manufacturing sector. this pure NON-SENSE, the weak currency only benefits the FEDERAL GOVERNMENT, which get’s to print and SPEND the money before the people.
One of the reasons some want a weaker Loonie is so they can RAISE OPERATIONAL costs; having a FIXED price of labor set by a labor union prevents SMALLER BUSINESSES from emerging if you’re unaware, small NIMBLE businesses often replace large bloated corporations in capitalist system, which equates to an ever-evolving workforce, which is something labor unions hate, because it’s hard to set up a labor union in a business with less than 30 people.
One of the mantras of labor unions is “if you can’t afford a union wage, you don’t deserve to be in business” This is one of the reasons why a lot of manufacturing is now in China. The Chinese COMMUNIST Party doesn’t allow labour unions; the technocrats in China, know the damage labor unions cause to a nation, so labor unions are BANNED in China. If you go to Mainland China TODAY, there’s a vibrant SMALL BUSINESS culture.
Higher operational costs fueled by labor unions and big government equate to a HIGHER cost of living for ALL citizens, which also equates to higher operational costs for small and medium-sized businesses.
The Canadian dollar could be the strongest currency in the world, and we could still have a strong MANUFACTURING sector, the primary reason manufacturing left Canada is because of expensive OPERATIONAL COSTS. Y
You’ll notice that since Trudeau created the carbon tax and added unnecessary regulations to the Canadian economy, labor unions have been going on strike or demanding higher pay all over Canada. The economic problems in Canada, as I like to point out, are SYSTEMATIC, and based on my research, this SERVICE sector economy equates to more reliance on a STRONG LOONIE.
Wages are fancy words for PRICES, and using the STATE to raise prices or bullying an employer to raise prices to the benefit of the labor unions destroys the middle class and poor that now have to pay the higher prices, and this also equates to smaller business not being able to compete with established large corporations.
The Labour unions, especially the PUBLIC SECTOR Labour unions, leech on the economy the most. People tend to forget that CAPITALISM, which GOES HAND IN HAND WITH INNOVATION, is inherently DEFLATIONARY.
The cost of electronics has come down because of cheaper OPERATIONAL costs in ASIA. If most of the electronics you take for granted were still being made in Canada, the price for electronics would be far greater, why? Canada has a BLOATED government, which, by the way, also includes the Canada Pension Plan.
The downside to Alberta going it’s own way with its own pension, is that the Federal government could react or respond by adding more regulations, and possibly more taxes to Alberta’s PRIVATE SECTOR. As I stated to begin this post, the average Canadian as an extremely low financial IQ, so if a few people in the media create a narrative that demonizes the Alberta government, a lot of Canadian voters will believe it.
What’s my personal stance on an Alberta Pension Plan? Currently, it looks like Justin Trudeau will lose in 2025, so if I were the Alberta Premier, now would be a good time to start asking Pierre Poilievre if he supports an Alberta Pension Plan; you don’t have to force him to accept it, but you can get voters in Alberta to pressure him into accepting it.
This is one of the reasons why I like the People’s Party of Canada, existence, I’m hopeful that the PPC can perform in the 2025 election, because I think the NDP-Liberal coalition, worked out well, for the Left Wingers in Canada, but I also think Canada’s frustrated immigrant population, can come to the Right side of the political spectrum, a lot of the immigrants in Canada, appear to love education.
Racism is not really a thing in Canada. people can point out racist incidents, but it’s not a profitable industry in Canada, the way it is in the United States and therefore, the immigrant population in Canada, for the most part, appears to want better lives, which bodes well for Alberta’s Pensions, if their private sector is able to flourish.
At this phase, it’s basically a better strategy to allow Justin Trudeau to crash and burn, rather than provide him with fuel.
Interesting times ahead!